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Computer
Daily News
AUSTRALIA’S DAILY FAX
Friday, October 25, 2013
Issue No. 6166
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Huawei gains allies
in bid to have
Aust. ban lifted
S
YDNEY – Moves appear to be under way in the Abbott Government to relax the ban imposed on Chinese
telecoms equipment supplier Huawei from contracting with NBN Co or other major government projects.
The ban was imposed by the former Labor Government
on the advice of the Australian Security Intelligence Organisation, and follows similar bans in the USA, based on
suspicions that its equipment might be used for espionage.
This is at least partly due to claimed links between
Huawei leadership and the People’s Liberation Army.
Huawei is also under investigation by the UK’s national
security adviser, Kim Darroch.
Communications Minister Malcolm Turnbull in August said the
Government would review the ban on
Huawei. He has since said the review
would concentrate on whether Huawei equipment is capable of intercepting and diverting traffic signals in a
manner that is not detectible.
This week Trade Minister Andrew Robb – who has
been visiting China – has joined the chorus, saying he
“strongly supports” the review and that Huawei has a
“big future in Australia”.
“They are a well respected company within Australia
and they have already made a big contribution to [the
telco] sector,” he said during a visit to Shanghai, according to news reports.
“You look at their growth year-on-year: it’s phenomContinued on page 2
BT exec joins NBN Co team
SYDNEY – A senior British Telecom executive is the
latest to be hired by NBN Co executive chairman Ziggy
Switkowski to advise on NBN rollout matters – and may
be under consideration as a future NBN Co CEO.
The executive is Mike Galvin, MD of BT’s Openreach
infrastructure division, who has been heading up a £2.5
billion fibreoptic rollout by BT that aims to connect 19
million homes and businesses in the UK by early 2014.
The rollout uses a mix of fibre-to-the-node and fibreto-the-premises technologies.
Galvin, pictured, is now on a two-week secondment to
Australia to consult with both
NBN Co executive chairman Ziggy
Switkowski and Communications
Minister Malcolm Turnbull, according to a Financial Review report.
The move has not been announced publicly by NBN Co,
unlike the recent hiring of former
Telstra execs JB Rousselot and Justin Milne.
According to the Fin, Turnbull consulted with Galvin
as he sought to form the Coalition’s NBN policy.
Galvin has also been fingered as a potential chief executive of NBN Co, replacing Switkowski in his executive
role, according to the Fin – though it also says industry
experts suggest his lack of local industry knowledge could
hamper that move.
Aussies embrace subscriptions
SYDNEY – The business world is rapidly moving
towards subscription-based services, in many cases delivered via the cloud – and Australia is among the prime
movers, Zuora founder and CEO Tien Tzuo told a media
briefing yesterday.
Zuora claims to be the global leader in subscription
commerce and billing, with
650 global customers including Reed Business Information, Informatica, Box,
News UK and Australia’s
Fairfax Media.
The subscription economy is producing a profound
change in the way business is done, Tzuo said, with people
increasingly preferring to subscribe to services rather than
buy products. Australian consumers, he said, are ahead
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of the US in embracing this trend
He quoted a recent research by the Economist Intelligence Unit which found, among other things, that 67
percent of Australian companies are changing the way the
price and deliver goods and services, and just under half
of these are introducing subscription models.
“This is where the future is going – services delivered
by the cloud,” he said.
One very satisfied Australian customer which is taking
this approach is Lovetts Media, which supplies crosswords and puzzles to magazines and newspapers – and
is now embracing the subscription model with more than
150,000 subscribers across the globe.
In Australia Zuora has recently hired a new CEO, Greg
Cullen, formerly of Service-Now, who told yesterday’s
event local headcount is about to double to 10 as business
expands.
One last kick for KickStart
– then it’s Tech Leaders time
SYDNEY – KickStart – the annual gabfest that links
Australian technology journalists and industry leaders –
is to change its name to Tech Leaders, MediaConnect’s
Phil Sim has revealed.
The three-day conference on coming IT trends occurs
in February each year, usually in Queensland, and
is attended by 50 journos
and a similar number of IT
company execs and public
relations people.
The next event – scheduled for InterContinental
Sanctuary Cove Resort from
February 16 to 18 next year – will retain its KickStart
moniker, Sim told CDN yesterday. But the first two days,
which will focus on “thought-leadership”, will be billed
as Tech Leaders sessions, he said
“We expect the event to operate as Tech Leaders by
2015,” he said.
He has explained: “We felt that Kickstart Forum, while
a strong brand within the tech media and PR community,
didn’t really communicate to the public what the event
was about, whereas Tech Leaders does that much better.”
This year’s KickStart generated a lot of news coverage,
particularly following a tense bit of verballing between
the then shadow minister Malcolm Turnbull and ABC
journo Nick Ross. But “we saw on Twitter a lot of people
Huawei gains allies
Continued from page 1
enal. And they do produce very good products.”
Huawei equipment is already used by major telecoms operators in Australia, including Vodafone,
Optus, Telstra, AAPT, Primus, TPG and iiNet. Former Coalition Foreign Minister Andrew Downer is a
member of its Australian board, as is former Victorian
Premier John Brumby.
2
FRI, OCT 25, 2013
asking ‘what is this Kickstart Forum all about?’, and we
believe Tech Leaders is much better positioning for the
event,” Sim said.
He added that in future all presentations will be professionally filmed and hosted on a video-based Web site at
techleaders.com.au.
UXC swallows WhiteLabelled
SYDNEY – ASX-listed ITC consultancy UXC has inked
a deal to acquire digital and e-commerce specialist White
Labelled for an undisclosed sum, said to be principally
cash with some equity.
UXC says White Labelled specialises in systems built
on platforms such as Hybris (an SAP company), Oracle
Commerce, IBM WebSphere Commerce and Magento.
WhiteLabelled will become part of wholly owned subsidiary UXC Oxygen.
UXC MD Cris Nicholli said: “White Labelled offers a
full outsourced service to some of Australia’s largest and
well known multichannel and pure play retailers, who
collectively sell around $450 million online annually.”
Hackers shifting attack focus
to service industries: report
SAN FRANCISCO – The average number of targeted
attacks per day by hackers has dropped 41 percent in
the first nine months of this year compared with 2012,
security company Symantec has reported in its September
Intelligence Report.
But it warns this is still a 13 percent increase over the
same period in 2011, showing targeted attacks are still
trending upwards over a longer period of time.
“In terms of targets, it appears that manufacturing is no
longer the leading industry on
the receiving end of targeted
attacks, having dropped from
24 percent of attacks in 2012 to
8.7 percent so far in 2013,” the
report says.
Instead the main targets now
appear to be service-related industries. This appears to be
related to supply-chain attacks, where attackers look for
the easiest point of entry and work their way up the chain.
The report identifies Hidden Lynx, a target attack group
based in China, as a major source of attacks.
“We think it’s a professional organisation, with lots of
experience, using cutting edge techniques. They do a payper-order service, where a client will contact the group
and ask them to pursue some specific information that
is of use to them,” notes threat analyst Stephen Doherty.
“They tend to go after both private industry and
governmental organisations in the wealthiest and most
technologically advanced countries.”
Symantec sales miss estimates
SAN FRANCISCO – Security market leader Symantec
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has forecast its profit and sales will fall short of analysts’
estimates on the back of a corporate overhaul and as the
market for antivirus software slumps on weakening PC
shipments.
Profit excluding some costs will be 41 cents to 43 cents
a share on sales of US$1.63 billion to $1.67 billion in the
third quarter ending in December, Symantec said. Analysts
on average were projecting profit of 51 cents on sales of
$1.79 billion, according to Bloomberg.
CEO Steve Bennett said job cuts and restructuring to
combine far-flung divisions are part of a multiyear turnaround plan.
Symantec shares dropped as much as 14 percent in extended trading. The shares declined 2.3 percent to $24.62
at the close in New York, and had climbed 87 percent since
Bennett was appointed last year.
Perlmutter moves out at Intel
SAN FRANCISCO – The recent management shakeup
at Intel has claimed a high-level casualty, the Wall Street
Journal reports.
Dadi “David” Perlmutter, pictured, a well-respected
executive VP who had been
a leading but unsuccessful
contender in the race to
succeed former CEO Paul
Otellini, will leave the company early next year, after
34 years.
Perlmutter was among
the candidates who pitched Intel’s board of directors for
the CEO job, but lost out to then-COO Brian Krzanich.
Within days of Krzanich taking over, there were reports
that he had moved to take direct control over Intel’s architecture group, and had relegated Perlmutter to a “vaguely
described transitional role”, according to the WSJ.
Apple wins patent trial
SAN FRANCISCO – Apple has won a patent-infringement case against Wi-Lan which had been seeking US$248
million from the iPhone maker over an invention for wireless technology used in mobile devices.
A US federal jury found Apple didn’t infringe a patent
for technology used in wireless networking, along with
two patent claims it ruled were invalid.
This follows its loss in a number of patent cases in July
brought against Alcatel Lucent, Ericsson, HTC and Sony.
Wi-Lan reported a loss of $762,000 in the second quarter
on revenue of $19.9 million, with litigation expenses accounting for much of its costs.
US move to curb patent cases
WASHINGTON DC – After years of inaction on patent
law, a new bill has been introduced to the US House of
Representatives, aimed at curbing patent cases which cost
business billions of dollars.
The draft Innovation Act attempts to limit patent claims,
INSIDE COMPUTER DAILY NEWS
Computer Daily News is published by David Frith
Computer Services, PO Box 906, Milsons Point, NSW 2061.
Phone: (02) 9909 8470
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Contributing editor: Merri Mack
Special reporter: Gareth Powell
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make litigants pay full costs of their lawsuits and require
plaintiffs to demonstrate much higher standards of evidence.
“Abusive patent litigation is a drag on our economy,”
said House Judiciary Committee chairman Bob Goodlatte. “Everyone from independent inventors, to start-ups,
to mid and large sized businesses face this constant threat.
“The tens of billions of dollars spent on settlements and
litigation expenses associated with abusive patent suits
represent truly wasted capital that could have been used
to create new jobs, fund R&D, and create new innovations
and technologies.”
Surface Pro 2 full of problems
SEATTLE – Microsoft’s Surface Pro 2 tablets are little
changed from the original Surface Pro design, and according to iFixit they’re just as difficult
to repair.
IFixit’s teardown of the new slate
reveals that its guts are full of thick,
tacky glue and more than 90
screws, just like its predecessor. And just like the first Surface Pro, it earns a Reparability Score of
1 out of 10 – which, as iFixit observed last time around, is
the lowest score ever received by any tablet.
Juniper axes 300 jobs
SAN FRANCISCO – Juniper Networks is axing hundreds of workers amid concerns the recent US government
shutdown may have hampered its US business.
Juniper also revealed sales had risen to $1.18 billion,
up three percent sequentially and six percent versus the
same period a year ago.
This was the fifth consecutive quarter of year-on-year
growth but, despite that, the chief financial officer Robyn
Denholm confirmed belt tightening was necessary.
“We have taken some restructuring and rebalancing
All material in Computer Daily News is copyright and may not be photocopied or otherwise reproduced without permission
FRI, OCT 25, 2013
3
Computer
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action in October that will result in the elimination of approximately 280 positions in the fourth quarter,” the said.
This equates to a three percent cut in global headcount.
Twitter gets $1bn credit line
SAN FRANCISCO – Twitter has obtained a $1 billion
credit facility in the lead-up to its initial public offering.
Twitter also said MoPub, an advertising start-up that
it’s acquiring, recorded sales of $6.52 million in the first
half of 2013, compared with $2.69 million for all of last
year. The acquisition is scheduled to close in November.
Twitter is falling into line behind Facebook and Zynga
which both obtained credit facilities in connection with
their IPOs. It is expected to use the funding to help with
further acquisitions.
LinkedIn gets more mobile
SAN FRANCISCO – LinkedIn is making changes to
its mobile applications following release of figures that
show 38 percent of its monthly visitors access LinkedIn
through a mobile device – up from eight percent in the
first quarter of 2011.
The main new features include Intro, a mobile app that
allows users to see LinkedIn profiles in the iPhone Mail
app, via a bar embedded in the e-mail. The bar displays
a LinkedIn profile picture and title, and users can tap on
it to see that person’s other LinkedIn connections, their
employment and education history and endorsements.
The app works with accounts on Gmail, Yahoo and
iCloud, but is missing integration with Microsoft Exchange.
Akamai drops on Q4 forecast
BOSTON – Akamai Technologies shares dropped as
much as 13 percent in late trading after the Internet accelerator also forecast profit and sales below analysts’ estimates.
Fourth-quarter sales were tipped to reach US$412
million to $430 million, compared with the $424 million
analyst estimate.
Akamai said it is counting on a strong holiday season
for Internet activity to help it reach the high end of its
forecast.
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